Financial Results for the Third Quarter of FY2024

On January 29, we announced our financial results for the third quarter of FY2024.

During this period, the global economy maintained moderate growth overall, but the outlook still remains uncertain.

The combined effects of multiple factors, including the risk of policy changes associated with the results of elections in major countries, lingering geopolitical risks, a slowdown in the Chinese economy, stagnation in the European economy, and rapid fluctuations in exchange rates due to changes in policy rates, have increased the uncertainty in the economic environment.

Despite such circumstances, our Group has achieved record highs in all figures from net sales to profit attributable to owner of the parent company in all Third Quarters.

Summary of Financial Results for the Third Quarter of FY2024

Net sales: 471.3 billion yen (+3.1% YoY)

Business profit: 32.7 billion yen (+28.8% YoY)

Profit attributable to owners of the parent company: 22.2 billion yen (+65.7% YoY)

Production in the third quarter varied by region, but was mostly within our expectations, and the yen continued to depreciate.

I would like to express my deep appreciation for the daily efforts of all our employees.

Although real volume, excluding the effect of exchange rates, was down compared to the same period last year, we were able to generate more profit than expected thanks to everyone's productivity improvement activities and sales efforts.

In the Automotive Products Divisions, production volume was sluggish due to the impact of the struggling Japanese OEMs in China and the slowdown in the shift to EVs in Europe, but the weakening yen had a positive effect on currency conversion.

Business profit increased significantly due to everyone's cost reduction activities, production efficiency improvements, and the reflection of cost increases in selling prices.

In the General Industrial Products Division, the Chemical and Plastic Products business contributed significantly to the increase in both net sales and business profit, mainly due to the effect of structural reforms at Fuji Susono Plant.

The Industrial Hose Business, Industrial Products and Materials Business, and other businesses also did well, resulting in higher net sales and business profits compared to the same period last year.

Third Upward Revision of Earnings Forecast for FY2024

Although the outlook remains uncertain, we have revised our forecast for the current fiscal year based on the current situation and available information, in addition to the third quarter results.

Net sales: 630 billion yen

Business profit: 42.0 billion yen

Profit attributable to owners of the parent comapny: 24.9 billion yen

As shown above, both net sales and business profit are expected to reach record highs.

*Assumptions for exchange rates are 150 yen to the US dollar and 160 yen to the euro from the fourth quarter of the current fiscal year onward.

With the change of administration in the U.S., we need to be alert to sudden policy changes.

Unexpected waves of increase or decrease in production may occur, but we have grown into a “team that can flexibly respond to changes” through the Corona Pandemic.

Let us firmly implement “Reporting, Communication, and Consultation” and respond flexibly.

Also, it is precisely at times like these that I ask you to be more aware than ever of S.E.C.Q. (Safety, Environment, Compliance, and Quality).

We have only two months left in FY2024.

Let's work together until the end of the fiscal year to ensure that we can be ready for the success of our mid-term management plan!